This new guide can help you:

• Make your store easier to find
• Start using social media
• Use the internet to bring in more customers
• Find important industry news & events
• Make connections with groups who can help boost your c-store business

Are you ready to start making the internet work for you? 

Download this exclusive C-Store Owner Online Resource Guide today!

Competition has no boundary in today’s C-Store Industry. There are pros and cons for this, but competition is on every retailers’ mind. Specifically, on the mind is how to beat the surrounding competition. It is important though to think about the bigger picture.

What does this mean? Every retailer, not just your neighbors, is competition.

For you, as an owner, to outdo the competition you must make your store different. It can be intimidating to stand up against giants like QuikTrip. However, you can do something to even the odds. Being different in a way your competitors cannot copy easily is called competitive advantage, and as a small retailer this can be what matters most.

Competitive Advantage should not be taken lightly. It is making sure you have the upper hand in business. You don’t have to reinvent the entire industry or create new projects that change the future. There are a few adjustments you can do to your store that cost little to nothing and increase the number of customers!

Build a Relationship

Treating your customers right is obvious. Never has it crossed your mind to fight a customer or even yell at one. This isn’t what we are talking about. Going the extra mile with customer service is the difference. By providing excellent service, you will be able to build a relationship with all your customers. Reminding your employees to do the following will create the foundation of the relationships with your customers:

• Greet customers the moment they come in
• Smile at every customer
• Create small talk by asking about the customers’ day
• Ask customers if they additional help

It can be difficult for large businesses to offer the same kind of customer service as smaller retailers. Because you are dealing with everyday tasks, more hands on, then you can administer the service better! In addition, these simple things do not cost a single penny! They will improve your customer service and will also build positive relationships with regulars and will also create new regulars.

Making Customers feel at Home

Imagine walking into your living room and seeing a complete disaster of a mess. This would make one feel unwelcome in your own home! We all have a messy house at time, but it is easily fixed with a broomstick. You should have the same mentality for your store(s). Your customers are like guests in your home. You want them to feel comfortable and enjoy themselves. You do not want them to walk in and feel gross.

By cleaning daily and having a familiar store layout, it’ll make your customer very happy.

• Wiping the counter
• Sweeping the entrance
• Accessible product placements

Those are just a few things that can be done in seconds but will be noticed by your customers. Making your customer feel at home in your store will guarantee them to come back and make future purchases!

Relate to your Community 

By catering to your community, you can build a big name in your neighbored for your store! Yes, everyone knows the large names like Walmart and Target but just because those stores are well known, it doesn’t mean they have your community’s preference. As a smaller retailer, you are closer to your community than any competitor. You know your community better than anyone. Use this as an advantage. Depending on the surrounding citizens, sell products that they can’t find in large, generic retailers.

For example: Your store is located in a Hispanic environment. Therefore, most of your customers will be Hispanic. Since your customers share similar cultures, then sell Hispanic products, such as tortillas or Hispanic treats!

At the end of the day, your competitive advantage are the relationships you have with your customers and community. By being able to provide for you community in a way, large retailers cannot compare to will be the difference. Don’t lose the main focus which is the customer! If you feel there is a positive relationship with your customers, it most likely the feeling is mutual. The more solid your relationship becomes; the more loyalty is built with your customers. Remember, the competitive advantage is about being different. Being different for the customer’s sake.

Want to learn more about building the Ideal C-Store Experience? Click here.

Source: Thrive Hive

There are more cardholders than you may think…

The SNAP program provides benefits to over 42 million people – or 1 in 8 Americans.  The people in our country that use this program are not just a small population hidden from plain sight.  Almost everyone knows a person or two that receive SNAP benefits on an EBT card.  The average family of three receives about $376 per month, which means our government spends about $68 billion per year to ensure recipients have benefits.  Who wouldn’t want a piece of that money at their store?

Where do cardholders usually live?…

Some people assume that those who receive SNAP benefits are only living in low income housing, crowded urban areas, or even on the streets.  However, this isn’t true at all.  While many cardholders DO live in metropolitan areas and are often considered below the poverty line, there are still many others who have different living situations.  Even stores in rural areas and suburbs find that accepting SNAP/EBT cards at their store draws in even more customers. Use this interactive map to find out more details about SNAP benefits in YOUR state.

Who are the cardholders?…

In 2016:

• 44% of SNAP recipients were children
• 12% were senior citizens (older than 60)
• The rest were working-age adults
• 57% were female
• 43% were male
• 36% were non-Hispanic, white
• 26% were black
• 17% were Hispanic
• 3% were Asian
• 11% were non-elderly (younger than 60) and disabled

Do cardholders have jobs?…

Because a household must have a gross monthly income that is below 130% of the poverty line ($26,600 for a family of three), many people assume that the recipients of SNAP benefits, or food stamps, are unemployed and simply not trying to make money.  This is not true.  The SNAP program requires able-bodied adults without children to work in order to receive benefits and in some states, parents must work too.

Do cardholders stay on SNAP forever?…

For adults who do not have children, there is a time limit of three months out of a three year period during which they can receive SNAP or food stamp benefits, unless they are working.  For others, SNAP benefits can be received as long as the household qualifies.  There are yearly re-application rules for every household and if they are not met, the benefits will be cut off.  Although a household could receive benefits for a long period of time, about one-third of the people who receive benefits quit within one year.

If you aren’t already authorized to accept SNAP/EBT benefits in your store, you should be considering applying.  The program allows so many Americans in need to survive through tough times, and it even helps business owners like yourself to grow their profits by catering to a large additional group of customers.

Euromonitor expects sparkling water sales to reach $3.1 billion by 2022. Here are some of the most popular sparkling water brands.

1. Pellegrino 

Pellegrino sold over one billion bottles the last year. The low calorie drink also comes in fruit flavors. 

2. Sparkling Ice 

Sparkling Ice contains zero calories and zero sugar and comes in a variety of flavors.

3. La Croix 

 La Croix is an all natural sparkling water that comes in over 20 different flavors .

4. Sprindrift 

 Sprindrift is a newer brand, launching back in 2010. The drink contains two ingredients: fruit juice and water.

5. Perrier 

Perrier has been around since the last 1800’s and has always been a customer favorite. The drink contains no sugar, caffeine, or calories. 

If you’re considering adding sparkling water to your store, start by asking your wholesaler for velocity reports to find out what they are moving. Sales for sparkling water are expected to increase and it’s a trend you do not want to miss out on. 

Halloween is just around the corner and retailers in all industries should make sure they are taking advantage.  2017 is expected to bring record high spending, to the tune of $9.1 billion and the c-store owners across the country are in the perfect position to rake in much of this money.  With many opportunities at your disposal, there’s no reason to miss out on the holiday profits.  If you aren’t sure how to make the most of this Halloween, we’ve got a list that will help you get in the spirit.

• Sell Bulk Candy – Few people want to be the only door on the block without a bowl of goodies for trick-or-treaters and whether they’re really busy or just simply forgot about Halloween, there will be people scrambling for candy to pass out. Try to get some boxes of large bags of candy that last minute shoppers can grab at your c-store.  The NRF predicts that $2.7 billion will be spent on candy, don’t miss out on this category spending.
• Have a Halloween Event – You could always host a small event at your store for the neighborhood to bring them in on Halloween, or during the weekend. While hosting a Halloween event may not bring in a lot of purchases right away, it will help remind local consumers about your business and hopefully bring them back in later.
• Halloween Specials – As a c-store owner, you know that seasonal promotions are a great way to increase traffic and basket size. During the Halloween season, you have a great opportunity to boost your sales with product cross-promotion and special pricing on specific items.  Most product manufacturers have special Halloween edition products that your consumers will love so try promoting those even more.
• Offer Novelties – Although candy and snacks are a great choice for additional Halloween sales, you should also consider carrying some non-edible novelty Halloween products. During Halloween, consumers love buying fun items including spooky prank items and fun decorations.  Although you will have to make room for these short-term items, you will enjoy the typically higher profit margin when your c-store customers purchase them.
• Promote Fall Products – Halloween is a great time to promote your fall flavors and special products. That means if you’re not carrying pumpkin and cinnamon flavored everything, you should be.  Also, the cooler fall weather is pushing consumers toward drinks like coffee and hot cocoa.  By adding a hot drink station, you can provide a benefit to neighborhood trick-or-treaters.

The end of the year is filled with plenty of holidays, which means plenty of opportunities to make more money.  Halloween is a great opportunity to kick off the season and show your c-store customers that you’re paying attention to what they want.

Cold Prepackaged Foods

The perception of convenience stores have changed, customers are walking past the frozen meals and heading towards the salads and yogurts. Especially millennials, who are likely to buy their fresh foods from any type of grocery chain, which is great news for c-stores. Large chain grocery stores are fewer and the competition from more convenient options like delivery or online orders is slowing their business growth. This is a great opportunity for c-stores to come in and offer fresh foods and produce in a setting that is easier to get in and out of.

For breakfast, prepackaged fruits and yogurt parfaits are easy items to carry.  When people are late to work and need to grab something quick, but still something that has health benefits, yogurts offer great protein and are low calorie.

Lunch is not typically a rush hour for c-stores, adding a hot food service may not see as much success as a cold food service would, especially in a small store. Customers can grab the lunch in the morning along with their breakfast and refrigerate it for later. Options such as fresh prepackaged sandwiches, salads, or small veggie plates are great products to consider selling. 

Produce

Products such as fresh fruits and vegetables are a great additional item to carry. Especially for c-stores who have a large SNAP user base. Offering produce at your store is a great way to attract more EBT customers. Studies show that SNAP users buy bread, meat, and milk the most but still are in need of fresh produce. One way to find out what other groceries your store should carry is by asking your customers, see what kind of fresh produce they are looking for. You want to offer the groceries that would be beneficial for your customers. Offering deals such as “2 for $1” is a sure way customers will pick you over the large grocery stores who may charge more for their freshest products.

Not only is offering fresh produce a great way to attract SNAP users, but also health conscious consumers.  Aside from offering prepacked fruits or vegetables, having fruit baskets near the register are a great selling point. Try selling different types of bread products that may be healthier and more organic. Almond and soy milk have also seen an increase in sales because of the health benefits they offer over regular or organic milk.

Hot Breakfast

Hot foods don’t just have to be fried food or nachos, consider other foods you can make throughout the day. The food doesn’t necessarily need to be full of nutrition, just made fresh daily and not processed. Hot breakfast foods are an easy item to consider adding to your store. Mornings are typically the busiest time for convenience stores and are a great time to test a new food service.

Customers are usually coming in for their morning coffee or something, you can start small and continue to build your hot food service from here.You can offer inexpensive fresh breakfast egg sandwiches or bacon and sausage biscuits as a start. Offering an oatmeal service is another healthier alternative option to add.

You do not have to change your options to healthy products all at once. Snacks, candy and soda still dominate in the c-store, but looking to add healthier options are another way to compete with corporate chain c-stores.

Answer: The simple answer to this question is yes, you can sell energy drinks. However, when it comes to selling energy drinks to a SNAP cardholder, there are some specific rules:

• Energy drinks that have a nutrition facts label ARE eligible to purchase with SNAP benefits
• Energy drinks that have a supplement facts label ARE NOT eligible to purchase with SNAP benefits

While some store owners assume they can pretty much sell any food or beverage to a customer who is using SNAP to pay for the items, that is actually not true.  There are a number of rules that apply to SNAP retailers, not just about what they can and can not sell in a SNAP transaction, but also what they have to sell in their store in order to be eligible to accept SNAP payments.

What items are NOT eligible to purchase with SNAP benefits?

Households that receive SNAP benefits can NOT use them to purchase:

• Beer, wine, liquor, cigarettes or tobacco
• Any nonfood items, such as:
  • pet foods
  • soaps, paper products
  • household supplies
• Vitamins and medicines
• Food that will be eaten in the store
• Hot foods or any food sold to be consumed on the premises
• Holiday gift baskets in which the value of non-food items exceeds 50% of the total price
• Live animals
• Grooming items, cosmetics

What items ARE eligible to purchase with SNAP benefits?

• Breads and cereals
• Fruits and vegetables
• Meats, fish, and poultry
• Dairy products
• Seeds, plants that produce food for the household to eat
• Soft drinks, candy, cookies, snack crackers
• Ice cream
• Seafood and steak
• Bakery cakes
• Pumpkins

What happens if you sell ineligible items in a SNAP transaction?

If you sell the wrong items to a customer paying with SNAP benefits, you are committing SNAP fraud and could not only be disqualified as a SNAP retailer, but also be fined.

The FDIC estimates that there are approximately nine million unbanked households in America. These customers have limited or no access to online shopping or online bill payments, making life much more difficult today. Luckily, many companies are adapting to this issue and finding ways to help consumers. The latest developments by companies like Amazon and Incomm take away the need for a bank accounts and credit by offering cash-to-digital solutions.

What is cash-to-digital technology?

For customers who don’t have a bank card, any online shopping, gaming, downloading music/movies, or ridesharing is nearly impossible.

Cash-to-digital technology lets customers walk into a store and pay cash DIRECTLY to their online account. From there, they can download music/movies, purchase from Amazon, online shop, and much more without the need of a credit card, debit card, or bank account.

Online Payments

It is expected that within the next 5 years one-fifth of the retail market will be shifted to online and that Amazon will own two-thirds of that share.  Amazon has been a growing power taking over online shopping, half of online shopping starts from Amazon. To capture the underbanked/unbanked consumers, Amazon has introduced Amazon Cash.  The solution lets customers walk into a store and add money to their Amazon Balance to purchase things off Amazon.com.

Another major player in the cash to digital space is Incomm.  The payments powerhouse offers two user friendly solutions: VanillaDirect Load and VanillaDirect Pay. Through VanillaDirect Pay, customers can visit a nearby participating store and pay their bills simply by the scan of a barcode on their smartphone.  Now, customers can start their Bill Pay transaction with an easy-to-use app instead of having to carry around their bills.

VanillaDirect Load is different than their Bill Pay feature. Cash-based customers can digitize their money quickly by going into a convenience store and adding money to their reloadable debit card. Reloadable cards take away the need for a bank account and give customers the security they want.

Prepaid debit cards are also a great product that can be found in the c-store. They are a great alternative for debit cards for customers in more ways than one. For unbanked customers, they can purchase prepaid debit cards to do any online shopping, buy off Itunes, or use it for any bill payments. Prepaid debit cards also help people manage their finances and avoid overspending and over draft fees.

Gaming

Whether you know it or not, video gaming consumers are spending a lot of money on their favorite games. 64% of American households have at least one person who plays video games regularly.  Unfortunately, for people without a debit or credit card, gaming can become difficult. This is especially hard for minors who are not old enough to open a bank account. Now, customers can visit a local c-store or other retail location to load cash to their online gaming accounts.  Companies like Sony Playstation and Xbox have even partnered with Incomm to offer a service where customers can go into stores and add cash to their account .

Similar Concepts

Prepaid Phones: A lot of c-store customers depend on prepaid phones . Prepaid phone users tend to be: unbanked, underbanked, low income, immigrants, and tourist.

All these users are customers that c-stores cater to. Offering mobile phone top-up is easy and profitable for you and above all, convenient for your customers. Customers can walk into your store and add money to their account. With most Bill Pay solutions, customers can pay for their cell phone service with major providers like Verizon, T- Mobile, Net10 and Tracfone account at YOUR store.

Public Transit Credit Loading:

Taking the bus, train, light rails, and other services are popular alternative to driving because it saves money and time spent in traffic. Transit users who need to pay in cash can pay at the teller or machine, but if there is a long line or if the person is running late, it becomes inconvenient. Now, customers can have a card where they can add money to their account at kiosks or even a local c-store.

Uber and Lyft are also working on catering to cash dependent consumers.  Both companies already offer gift cards and allow consumers to send money to each other’s accounts easily.  Now, Lyft is working on technology that would allow riders to load cash to their accounts at local businesses, instead of purchasing a card.

Although it seems like most of retail is going digital, cash is still king for convenience stores. With so many Americans unbanked,it is important that they still access to the online shopping and bill paying.

As we mentioned in our last blog, product trends can change depending on the region. However, these products sell well at almost any c-store.

Tobacco Products

According to NACS your leader in sales are cigarettes. Majority (63.4%) of tobacco products are sold in convenience stores with 80.5% of them being premium brands. Some of the most popular brands are:

• Marlboro (14%)
• Newport (13%)
• Camel (8%)

While cigarettes are still in the lead for the most popular item sold in convenience stores, e-cigarettes have grown popular. Specifically for the e-cigarette manufacturer Juul, whose sales increased by almost 800 percent over the last year. Other tobacco products such as smokeless (dip, chew, snuff) account for 60.5% and cigars 27.9% in the category of “other tobacco products”.

Make sure you’re in a region where cigarette sales are still doing well. Due to increasing taxes on tobacco products in the northeast, stores have seen their cigarettes sales decrease.

Packaged Beverages

Packaged beverages were the third largest in sales.

• Carbonated soft drinks (29.6%)
• Alternative (26.8%)
• Bottles water (10.9%)
• Sports Drinks (9.7%)

Alternative drinks sales are very close to passing the sales of sodas. Sodas and sports drinks have seen a decline in sales, but iced tea and enhanced water sales have gone up. Consumers want healthy alternatives for their drinks which is why we are seeing alternative drink sales increase.  Some popular brands for alternative drinks would be: Vitamin Water, Bai, and Sparkling Ice. Consumers looking for an alternative drink to soda are willing to spend the extra money for the health benefit.

Lottery Tickets

Lottery is legal in 44 states and for those 44 states, is a huge profit for convenience stores. Americans spend over $66 billion on lottery tickets every year. 

You might be wondering why lottery tickets are important to your sales. Retailers only make about a 5% profit for each lottery ticket sold. The real profit comes from the other products customers buy when they’re buying a lottery ticket. In fact, 95% of lottery customers buy at least one additional item inside the store. Some of the most popular things bought with lottery tickets are:

• Newspapers (112% more likely to be purchased with lottery)
• Bakery items (68%)
• Cigarettes (60%)
• Coffee (59%)
• Soda (56%)

Try keeping a few sodas, newspapers, or bakery items near the cash register. This is an easy way to ensure that they buy          more than what they initially came for.

Over the Counter Drugs

This is one of the products that customers stop to buy unplanned. When people realize they might be getting sick and stop at the closest convenience store to stop the cold before it starts. This is especially convenient for customers who are traveling and need a quick remedy.

Drug stores are typically not opened passed 10 pm which is what makes this product so important. Customers know they can rely on convenience stores at any time to be opened to grab medicine. Aspirin, cough medicine, allergy pills, and sinus medication are good products to have. For medicine, it’s less about having a variety of brands and more about having the product available.

Toiletries and other personal essentials

This is especially for people traveling or for someone who suddenly ran out of the product and need to stop somewhere without waiting in the long line. Some good products to keep on stock would be:

• Shampoo
• Toothbrush
• Toothpaste
• Deodorant

For these products, it’s best to keep “travel sized” options instead. Customers who stop at convenience stores for these items only need a small amount because it is only a temporary solution.

Convenience store stops are usually an alternative to going to the grocery store.  This is because of the speed and convenience c-stores have to offer. Customers like being able to buy a few small products without the hassle of a long line. Lottery tickets, over the counter drugs, toiletries, tobacco, and packaged beverages are just a few of the small products customers love about your convenience store.

Findings from the Northeast & Midwest

• C-stores in the Northeast are doing very well in foodservice
  • If you’re in this region and haven’t invested in foodservice yet, you should. Customers are getting used to having access to hot and cold prepared foods at their local c-stores.
• The Northeast saw a large decline in cigarette sales in 2017
  • Rising taxes on tobacco products are making cigarettes a much less profitable category. If you’re in this region, or another place where tobacco taxes are increasing, make sure you are making up for the lost profit in other areas.
• The Midwest sees more sales of perishable groceries than any other region in the country.
  • If your c-store is in the Midwest, you should evaluate your distribution and see how you can offer more perishable groceries like fruits and vegetables.
• C-stores in the Midwest index below the national averages for 4 out of 5 foodservice categories.
  • More stores in the Midwest need to invest in a foodservice program, whether it be dispensed beverages or prepared sandwiches.
• In both the Midwest and Northeast commissary sales are down.
  • Invest more in foodservice to win with customers in these regions, packaged goods are not where they are spending their money.

Findings from the Southeast and South Central Regions

• Retailers in the Southeast are seeing the benefits of a growing population
  • More and more consumers are moving and settling in the Southeast, creating larger cities where more businesses can thrive
• The Southeast underindexes in foodservice compared to the national average
  • More c-store owners in the Southeast need to take advantage of foodservice programs, as the region is missing a huge opportunity for new profits
• The Southeast is ahead of the national averages when it comes to commissary product sales
  • While the other regions are struggling in this category, store owners in the Southeast are seeing continued success
• C-stores in the South Central region seen a decline in prepared foods and dispensed beverages in 2017, causing them to underindex for both food service profit share and sales
• The South Central Region (mainly Texas) is adjusting to post-fracking boom reality
  • Consumers in this region are moving away due to the industrialization of the land
• While operating costs in the South Central region are still below the national averages, professionals in the industry are advising that store owners keep their eyes on the numbers

Findings from the Central and West Regions

• Although operating costs in the Central region are declining, the profit dollars are declining even faster
  • The low number of stores in this region, paired with the difficult access to products is causing store owners and operators to suffer
• Even fuel consumption in the Central region has declined a great deal
  • Retailers need to find ways to offset their loss in gasoline sales
• Operating costs in the West are increasing much faster than the profits that retailers are seeing
  • C-store owners in the West need to focus on how to get the ideal consumer products and how to run a store consumers love for a much cheaper price
• The West region is becoming saturated with businesses of all kinds, especially
  • New c-store locations are being opened in the suburbs, where there is still space and where consumers are migrating
• Wine knocked milk off the West regional top-selling categories in 2016
  • C-store owners should be paying close attention to the wine selection in their stores and what consumers are looking for in that category
• The West saw an 8% growth in prepared food.
  • Consumers in the West value a location to get quick fresh foods that they can enjoy on-the-go.